General Studies Paper-2

Context: India and the Republic of Uzbekistan signed a Bilateral Investment Treaty in Tashkent.

About

• The signing of the BIT reflects both nations’ shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment.
• The BIT is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both countries.
• It will increase the comfort level and boost the confidence of investors by assuring a minimum standard of treatment and non-discrimination, while providing for an independent forum for dispute settlement through arbitration.

Bilateral Investment Treaty (BIT)

• A BIT is a reciprocal agreement between two countries to provide protection to investments made by nationals and companies of one country in the other. It aims to create a favourable investment climate and promote economic cooperation between the signatory nations.
• India’s BIT Framework: India adopted a new Model BIT in 2015, replacing the earlier version from 1993. The new text serves as the template for negotiating future BITs and the investment chapters of Free Trade Agreements (FTAs) and Economic Partnership Agreements.

Key Features of India’s Model BIT (2015)

• National Treatment: Foreign investors are to be treated equally and fairly, similar to domestic investors, in all matters except in specific sectors where exceptions are mentioned.
• Protection from Expropriation: Limits the ability of the host country to expropriate (take over) foreign investments except for public purposes, in a non-discriminatory manner, and with adequate compensation.
• Fair and Equitable Treatment: Ensures fair treatment of foreign investors, but does not automatically guarantee broader rights like those found in older treaties.
• Full Protection and Security: Investments by foreign investors will be given full protection and security, consistent with the laws of the host country.
• Dispute Settlement: Exhaustion of Local Remedies: Investors must first attempt to resolve disputes within the legal framework of the host country, and only after exhausting all local remedies can they initiate international arbitration.
• Non-Discriminatory Treatment: Ensures protection from discrimination, particularly with respect to domestic investors, and guarantees Most-Favored-Nation (MFN) treatment.

India -Uzbekistan Relations

Historical Ties:

• India and Uzbekistan have centuries-old ties dating back to the time of the Silk Road, where cultural, religious, and trade exchanges flourished.
• The shared heritage between the two nations is evident in the cultural and historical similarities, including influences from Persian and Mughal eras.
• India’s relationship with Uzbekistan grew stronger after the latter’s independence following the collapse of the Soviet Union in 1991.

Political Relations:

• Strategic Partnership: India and Uzbekistan elevated their relationship to a Strategic Partnership during Uzbek President Shavkat Mirziyoyev’s visit to India in 2018.
• Regular High-Level Visits: Both countries regularly engage in high-level visits to deepen political, economic, and strategic ties. Indian Prime Minister Narendra Modi and President Mirziyoyev have met on several occasions, underlining the importance of the bilateral partnership.
• Multilateral Engagement: India and Uzbekistan collaborate in various multilateral forums, including the United Nations, Shanghai Cooperation Organisation (SCO), and the India-Central Asia Dialogue.

Economic and Trade Relations:

• Trade: India-Uzbekistan trade has witnessed growth over the years, though the potential remains largely untapped. The main exports from India include pharmaceuticals, machinery, electronic products, and textiles, while Uzbekistan exports items like fruits, fertilizers, and raw materials.
• Bilateral Trade Agreement: Both nations have a Bilateral Investment Treaty (BIT) in place, which protects and promotes investments. They are also working on finalizing a Preferential Trade Agreement (PTA) to enhance trade relations.
• Pharmaceuticals: Indian pharmaceutical companies have a significant presence in Uzbekistan, and there have been ongoing efforts to enhance this partnership further. India supplies about 25% of Uzbekistan’s pharmaceutical needs. Information Technology: Uzbekistan is increasingly seeking India’s expertise in Information Technology and digital governance.

Defense Cooperation:

• Military Exercises: India and Uzbekistan regularly engage in joint military exercises such as DUSTLIK, aimed at enhancing counter-terrorism cooperation.
• Defense Training: India provides military training to Uzbek armed forces through its various institutions, enhancing capacity-building efforts.
• Security Cooperation: Both nations cooperate on counterterrorism, anti-radicalization, and intelligence-sharing, particularly in the context of growing security concerns in Afghanistan and Central Asia.

Cultural Relations:

• Cultural Exchanges: India and Uzbekistan have vibrant cultural exchanges that focus on arts, music, dance, and yoga. Hindi is also widely taught in Uzbekistan, and Bollywood is extremely popular.
• People-to-People Ties: There is growing interest among the Uzbek population in India’s traditional medicine systems like Ayurveda and Yoga. Uzbekistan regularly participates in cultural festivals in India, and vice versa.

Connectivity and Transportation:

• Chabahar Port: India, Uzbekistan, and Iran are working on utilizing Chabahar Port to enhance connectivity with Afghanistan and Central Asia, bypassing Pakistan. This would open up opportunities for trade and economic engagement between India and Uzbekistan.
• International North-South Transport Corridor (INSTC): Uzbekistan has shown interest in the INSTC, a project that aims to reduce the time and cost of transporting goods between India and Central Asia.

Energy and Renewable Resources:

• Energy Cooperation: Uzbekistan is rich in natural resources, and India has expressed interest in developing energy partnerships in areas like natural gas and renewable energy.
• Nuclear Cooperation: Both countries signed a civil nuclear cooperation agreement for peaceful purposes, focusing on the exchange of knowledge and technology in nuclear energy.

India’s Developmental Assistance:

• Lines of Credit: India has extended various lines of credit to Uzbekistan to help fund infrastructure projects like road construction, water treatment plants, and renewable energy projects.
• Capacity Building Programs: Through the Indian Technical and Economic Cooperation (ITEC) program, India provides training and capacity-building assistance to Uzbek professionals in various sectors, such as health, agriculture, and IT.

Challenges

• Geopolitical Concerns: Afghanistan’s instability remains a concern for both India and Uzbekistan, particularly after the Taliban takeover. Both nations are working to address common security challenges.
• Trade Barriers: Despite the growing relationship, bilateral trade remains below potential due to connectivity issues, regulatory barriers, and lack of direct transportation links.

Recent Developments

• India-Central Asia Summit: India hosted the India-Central Asia Summit in January 2022, where both nations reiterated their commitment to strengthen ties, especially in trade, security, and energy sectors.
• Afghanistan Issue: India and Uzbekistan have expressed common concerns over terrorism emanating from Afghanistan and the importance of ensuring that Afghan territory is not used for terrorism

General Studies Paper-1

Context: Heavy rainfall in northern India has caused widespread flooding, landslides, that damage basic infrastructures and food supplies can be tackled using the innovative concept of sponge cities.

Urban Flooding in India

• Urban flooding occurs when built-up areas — such as cities and towns — experience inundation due to heavy rainfall, rapid snowmelt, or other sources of water runoff.
• Unlike rural floods, which typically affect flat or low-lying regions, urban flooding is a man-made disaster exacerbated by factors like unplanned urbanisation and inadequate drainage systems.
• As our cities grow, they alter natural processes, replacing permeable land surfaces with concrete and asphalt, which limits the ground’s ability to absorb rainwater.
• Consequently, surface runoff overwhelms drainage systems, leading to disruptions, property damage, and even loss of life.

Causes of Urban Flooding in India

• Unplanned Urbanisation: Rapid urban growth often occurs in low-lying areas due to rising land prices and limited availability in city centres.
• Unfortunately, these developments often encroach upon lakes, wetlands, and riverbeds, reducing the capacity of natural drains and exacerbating flooding.
• Impervious Surfaces: Roads, buildings, and other impervious structures prevent rainwater from seeping into the ground.
• As cities expand, the natural ability of soil to absorb water diminishes, leading to increased surface runoff.
• Ground Subsidence: The weight of heavy buildings and excessive groundwater extraction can cause ground subsidence, making urban areas more susceptible to flooding.

Sponge Cities: A Nature-Based Solution

• The concept of ‘sponge cities’ originated in China and has gained attention worldwide. These cities prioritise flood management by emphasising green infrastructure over traditional grey infrastructure (pipes and pumps).
• Green Infrastructure: Instead of relying solely on concrete drainage systems, sponge cities incorporate natural elements like plants, trees, wetlands, and permeable pavements. These act as ‘sponges’ by absorbing rainwater, slowing down its flow, and purifying it.

Working

• Permeability: Sponge cities prioritise permeable surfaces. Instead of vast concrete jungles, they incorporate green spaces, parks, and porous pavements. These surfaces allow rainwater to infiltrate the ground, replenishing aquifers and reducing surface runoff.
• Storage and Retention: These cities store rainwater strategically. They create retention ponds, wetlands, and underground storage tanks to capture excess water during heavy rainfall. By doing so, they prevent sudden floods downstream.
• Natural Drainage: Sponge cities restore natural drainage systems. They revive rivers, streams, and wetlands, allowing water to flow naturally. This approach mimics nature’s hydrological cycle, preventing urban floods.

Benefits

• Flood Reduction: By retaining and gradually releasing rainwater, sponge cities prevent flash floods.
• Ecological Biodiversity: Urban parks, green spaces, and wetlands improve biodiversity and provide habitats for wildlife.
• Heat Island Mitigation: Vegetation helps cool urban areas, reducing the heat island effect.
• Water Scarcity Alleviation: Capturing rainwater contributes to water availability during dry spells.

Conclusion

• As India faces the dual challenges of rapid urbanisation and climate change, adopting sponge city principles could be transformative.

By blending nature with urban design, sponge cities can create resilient, sustainable cities that effectively manage water, reduce flooding, and enhance overall livability.

General Studies Paper-2

Context: 8th India-Indonesia Foreign Office Consultations were held in New Delhi

• Both sides undertook a comprehensive review of bilateral ties, including political exchanges, defense and security, the maritime domain, trade and investment, healthcare, and connectivity. They also exchanged perspectives on regional and global issues of mutual interest.
• The two sides discussed the ongoing commemoration of the 75th anniversary of the establishment of India-Indonesia diplomatic relations and the various activities organized to mark this milestone.
• Both sides expressed satisfaction with the progress made across different sectors of engagement and agreed to explore new avenues of cooperation. It was agreed to hold the next FOC at a mutually convenient date.

India -Indonesia Bilateral Relations

• Cultural & Historical Ties: India and Indonesia share over two millennia of close cultural and commercial contacts.
• Hinduism, Buddhism, and later Islam spread to Indonesia from India.
• Indian epics like Ramayana and Mahabharata influence Indonesian folk art and dramas.
• The Bali Yatra festival is celebrated in both countries with enthusiasm.
• Political Relations: Both countries have common experiences of colonialism, democracy, pluralism, and progressive leadership.
• President Sukarno of Indonesia was the Guest of Honour during India’s first Republic Day in 1950.
• Both nations were instrumental in the independence movements of Asia and Africa, and contributed to the Bandung Conference (1955) and the formation of the Non-Aligned Movement (1961).
• India’s ‘Look East Policy’ (1991) and ‘Act East Policy’ (2014) have accelerated bilateral relations, particularly in politics, security, defense, commerce, and culture
• G20 Engagement: Indonesia chaired the G20 Presidency in 2022 with the theme “Recover Together, Recover Stronger.”
• India participated actively in G20 events hosted by Indonesia, and Prime Minister Modi attended the G20 Leaders’ Summit in Bali in November 2022.
• India assumed the G20 presidency in December 2022, hosting over 100 meetings with strong Indonesian participation.
• Economic Relations: Bilateral trade for 2022-23 was USD 38.85 billion, with Indian exports at USD 10.02 billion and imports at USD 28.82 billion.
• India is a major buyer of Indonesian coal, crude palm oil, and other resources. India exports refined petroleum, vehicles, agricultural products, and more.
• Investment: Indian investment in Indonesia reached USD 1,219 million in 4,750 projects (2000-2022).
• Much of Indian investment enters Indonesia via Singapore and other gateways, so the actual volume may be higher.
• Areas for Indian investment include joint ventures in diverse sectors.
• Blue Economy Opportunities: The blue economy focuses on sustainable economic activities related to oceans and seas.
• Indonesia is a leader in leveraging its maritime resources for sustainable economic growth.
• Digital & Technological Cooperation: Both India and Indonesia are highly digitalized and use technology for public services and e-governance.
• India’s success with Digital Public Infrastructures (DPI) can serve as a model for Indonesia, which is also developing its DPIs.
• Cybersecurity is a key area for cooperation as both countries face new security risks in digital public services.
• Defence: India and Indonesia have strong defence and security cooperation. In May 2018, during Prime Minister Narendra Modi’s visit, both nations signed a new Defence Cooperation Agreement, marking the elevation of their relationship to a Comprehensive Strategic Partnership.
• Exercise GARUDA SHAKTI is a joint training exercise between Indian Special Forces and the Indonesian Special Forces.

Future outlook

• Cooperation in the blue economy and digital technology offers promising opportunities for India and Indonesia.
• These collaborations will not only strengthen bilateral ties but also contribute to the broader Indo-Pacific region’s prosperity.
• There is potential for India and Indonesia to collaborate on marine pollution, overfishing, sea farming, maritime security, waste management, blue carbon spaces, and marine resource utilization for fuel and food production.

General Studies Paper-3

Context: India and Australia are in talks for a Comprehensive Economic Cooperation Agreement (CECA), after already having signed the Economic Cooperation and Trade Agreement (ECTA) in 2022.

About

• The talks focused on strengthening trade ties to achieve the countries’ shared goal of $100 billion in bilateral trade by 2030.
• The ECTA, which came into effect in 2022, has led to about $30 billion worth of Australian exports entering India tariff-free, with Australians saving around $225 million on goods from India.
• India is one of Australia’s largest trading partners, with two-way trade in goods valued at over $6.7 billion in 2023-24.
• Bilateral trade between both sides, including goods and services, stood close to $50 billion at the end of calendar year 2023.

About CECA

• It is a free-trade agreement between two countries that strengthens their bilateral trade.
• Australia and India first embarked on negotiations for a CECA in 2011.
• Talks were suspended in 2016. In 2021, the two countries formally revived the CECA talks.
• Both countries are looking to expand their trade ties under CECA, to cover sectors like goods, services, rules of origin, government procurement, digital trade, and agri-technology.
• It also aims to unlock the potential of sectors such as clean energy, agribusiness, education, skills development, and tourism.

Key Objectives:

• Trade Liberalization: Reduce tariffs and non-tariff barriers to promote bilateral trade.
• Investment Facilitation: Encourage mutual investments and provide a framework for better investment protection.
• Service Sector Expansion: Enhance cooperation in services, including education, healthcare, and professional services.
• Technological Collaboration: Foster innovation and technology exchange, especially in sectors like renewable energy and digital economy.

Significance:

• Economic Growth: Boost in GDP growth for both nations through increased trade volumes.
• Job Creation: Expansion of employment opportunities in various sectors.
• Market Access: Providing Australian businesses better access to the Indian market and vice versa.

Way Ahead

• The relationship between Australia and India has developed rapidly in recent years, particularly under the impetus of India’s far-reaching process of economic reform and the resulting rapid globalization of the Indian economy.
• Both countries have grown in strength and importance and made rapid strides in all areas – trade, energy and mining, science & technology, information technology, education, and defence.
• The year 2022-23 saw increasing depth and breadth of engagements including establishing new mechanisms for cooperation.
• In the coming years, the overall relationship between India and Australia will continue to grow and has the potential to assume greater prominence.

General Studies Paper-3

Context: On September 25, 2014, the “Make in India” initiative completed 10 years as a pivotal step in India’s nation-building efforts.

Pillars of ‘Make in India’

• New Processes: The “Make in India” initiative identified ‘ease of doing business’ as a crucial factor for promoting entrepreneurship.
• New Infrastructure: The government focused on developing industrial corridors and smart cities, integrating state-of-the-art technology and high-speed communication to create world-class infrastructure.
• New Sectors: Foreign Direct Investment (FDI) was significantly opened up in various sectors including Defence Production, Insurance, Medical Devices, Construction, and Railway infrastructure.
• New Mindset: The government embraced a role as a facilitator rather than a regulator, to foster a collaborative environment that supported industrial growth and innovation.

Major Achievements under Make in India

• FDI inflows have steadily risen, starting from $45.14 billion in 2014-15 to a record $84.83 billion in 2021-22.
• India made remarkable progress in improving its business environment, climbing from 142nd in 2014 to 63rd in the World Bank’s Doing Business Report (DBR) published in October 2019 before its discontinuation.
• India recorded merchandise exports worth $437.06 billion in FY 2023-24, reflecting the country’s growing role in global trade.
• The textile industry has created a staggering 14.5 crore jobs across the country, significantly contributing to India’s employment landscape.
• Vande Bharat Trains, India’s first indigenous semi-high-speed trains, are a shining example of the success of the ‘Make in India’ initiative.
• India became a major exporter of life-saving vaccines to many developing and underdeveloped countries across the world.
• India’s electronics sector has experienced rapid growth, reaching USD 155 billion in FY23.

What are the concerns?

• The share of manufacturing in India’s GDP was 17.3 percent in 2013-14, and it was still stagnant at 17.7 percent in 2023 far from the target of 25% by 2030.
• The share of the manufacturing sector in total employment in the country has marginally declined from 11.6 percent in 2013-14 to 10.6 percent in 2022-23.
• India’s exports as a share of GDP has fallen from 25.2 percent in 2013-14 to 22.7 percent in 2013-24.
• Exports are also relatively concentrated in goods and services that tend not to be labor-intensive.

Conclusion

• As the “Make in India” initiative celebrates its 10th anniversary, it stands as a testament to India’s determination to reshape its manufacturing landscape and enhance its global standing.
• Though the efforts and achievements fall short when the fundamental indicators of the manufacturing sector show lackluster growth, With strategic reforms, investment-friendly policies, and a strong focus on infrastructure development, the initiative has significantly enhanced India’s industrial capabilities.

General Studies Paper-1

Context: The state of Assam has recently experienced unprecedented temperatures nearing 40°C in September, unusual for the region, which may be attributed to the Heat Dome Effect.

About Heat Dome Effect

• The heat dome effect is a type of high-pressure system (also known as anticyclone) that forms over a large area in the atmosphere, and causes extremely hot and dry weather conditions.
• The system traps hot air and prevents it from flowing to rise and cool.
• This air then becomes compressed and heats up, leading to a dome-shaped area of hot air that can persist for several days or even weeks.
• Due to climate change, heat domes have not only become more frequent but also a lot more intense.
• The rising temperatures and changes in weather patterns are creating conditions that are assisting their formation.

Impact of Heat Domes

• Heat domes can cause dangerous heat waves causing the temperatures to shoot up.
• They can also lead to drought conditions and wildfire as the hot and dry weather can quickly dry out vegetation and make it more susceptible to catching fire.
• It can also have severe impacts on human health, agriculture, and ecosystems.
• Heat domes can persist for several days to weeks, depending on atmospheric conditions. The longer they last, the more severe the impacts can become.

Heat Domes vs Heat Waves

• While many people use ‘heat domes’ and ‘heat waves’ interchangeably, heat domes are just one of the atmospheric conditions that can contribute to the formation of a heat wave.
• A heat wave is a prolonged period of excessively hot weather, often accompanied by high humidity.
• Heat waves can occur for a variety of reasons, including the presence of a heat dome.
• Heat waves can also occur without the presence of a heat dome, such as when warm, humid air masses from the tropics move to an area and stagnate for an extended period.

General Studies Paper-3

Context: India’s trade deficit saw a significant rise in July and August 2024, as a result of falling exports and rising imports. This imbalance, though concerning, is a reflection of both domestic and global economic factors.

Understanding the Trade Deficit

• A trade deficit occurs when a country imports more than it exports, leading to a negative balance of trade. While trade deficits are not inherently harmful, they can have long-term economic implications, such as currency depreciation, increased debt, and challenges for domestic industries.
• Key Factors Influencing Trade Deficits: Exchange rates, global economic conditions, and domestic demand all play roles in determining the trade balance. For India, a combination of internal and external pressures has widened its deficit in recent months.

Reasons for the Widened Trade Deficit

1. Decline in Exports

Several of India’s major export sectors saw a significant decline during this period:

• Oil Exports: Petroleum exports fell by 22.2% in July and 37.6% in August, driven by both lower global demand and falling oil prices.
• Gems & Jewellery: Exports in this sector fell by over 20% in both months, affecting overall export performance.
• Pharmaceuticals and Electronics: Slower growth in these sectors contributed to the decline, as global demand remained weak.

1. China’s Economic Slowdown

India’s exports to China, particularly in sectors like stone, plaster, cement, and iron ore, fell due to China’s slowing economy. As China deals with internal economic troubles and reduced infrastructure spending, demand for raw materials has declined, impacting India’s export revenue.

1. Surge in Gold Imports

India’s gold imports surged to a record $10.1 billion in August, more than doubling from previous months. This was driven by a reduction in gold import duty and increased domestic demand ahead of the festive season. The spike in gold imports significantly contributed to the widening deficit.

1. Decline in Oil Imports

On a positive note, India’s oil import bill dropped by nearly a third due to falling global oil prices, resulting in the lowest petroleum trade deficit in three years. However, this reduction in import costs was not enough to offset the growing deficit in other areas.

Implications of the Widening Trade Deficit

• Currency Depreciation: A rising trade deficit can put pressure on the Indian rupee, leading to depreciation. This makes imports more expensive and can worsen the deficit further, as India relies heavily on imports for key commodities like oil and electronics.
• Impact on Economic Growth: A sustained trade deficit may slow down economic growth, as it reflects reduced competitiveness in exports and an over-reliance on imports.
• Strain on Foreign Exchange Reserves: Although India’s foreign exchange reserves remain strong, a prolonged trade deficit could erode these reserves, making it harder to stabilize the rupee in the future.

Long-term Challenges and Outlook

India’s trade deficit is influenced by several global and domestic factors:

• Weak Global Demand: Global economic conditions, particularly in developed markets like the U.S. and the EU, remain weak. This reduces demand for Indian exports, particularly in sectors like pharmaceuticals and textiles.
• China’s Economic Troubles: China may turn to non-U.S. markets to offload surplus goods, potentially flooding markets like India with cheap exports. This could harm domestic industries by creating greater competition.
• Trade Barriers and Regulations: New international trade policies, such as the EU’s carbon and deforestation policies, create additional challenges for Indian exporters, as they must comply with stricter environmental regulations.

Conclusion and Way Forward

While India’s growing trade deficit is a concern, it is not insurmountable. Policymakers must take strategic measures to address the structural issues in India’s trade.

• Boosting Exports: India must focus on improving the competitiveness of its export sectors by investing in technology, enhancing product quality, and expanding into new markets. Trade agreements with key partners should be strengthened to secure better market access.
• Reducing Unnecessary Imports: Reducing dependency on non-essential imports, particularly luxury items like gold, can help balance the trade deficit. Promoting domestic manufacturing and self-reliance in key sectors can reduce reliance on imports.
• Developing Domestic Industries: Investment in sectors like electronics manufacturing, renewable energy, and pharmaceuticals will reduce the need for imports and strengthen India’s export base.
• Managing Currency and Debt Levels: Effective management of the Indian rupee’s value, along with maintaining healthy levels of foreign exchange reserves, will be key in mitigating the impact of the trade deficit.

India’s goal of achieving $1 trillion in exports each for both goods and services by 2030 is ambitious, but achievable with the right policies. However, it will require overcoming the current global economic slowdown, navigating new trade regulations, and building a more self-reliant domestic economy. By addressing these challenges strategically, India can reduce its trade deficit and maintain its economic growth trajectory.

General Studies Paper-3

Context: The unorganised non-agriculture sector plays a vital role in value-creation and employment-generation in India. Understanding its dynamics is essential for shaping inclusive policies.

Unorganised Sector in India

About:

• The unorganised non-agriculture sector, often referred to as the informal or household sector, consists of economic activities operating outside formal regulatory frameworks. These include street vending, construction, household services, and small-scale manufacturing. The sector lacks official labour laws and protections but is critical to India’s economic growth.

Key Statistics:

• Contribution to GVA: In 2022-23, the unorganised sector contributed 44.25% to India’s total Gross Value Added (GVA).
• Employment: It provides employment to 74.3% of India’s workforce, making it a backbone of the economy.

Sectoral Trends:

• Shift Toward Services: Over the past decade, the unorganised sector has transitioned from manufacturing to services. Currently, ‘Other Services’ constitute 38% of all establishments, followed by Trade (35%) and Manufacturing (27%).
• Rural Dominance: Rural areas house 55% of unorganised establishments, emphasizing its strong roots in India’s villages.
• Productivity: The ‘Other Services’ sector also leads in productivity, contributing 41% of total GVA with a GVA per establishment of ₹58 lakh.

Challenges Faced by the Unorganised Sector

• Lack of Formalization and Regulation: Workers lack formal contracts, social security, and legal protections, making them vulnerable to exploitation.
• Job Insecurity: Employment is precarious, with irregular income and uncertain prospects.
• Low Productivity and Income Levels: Outdated technology, lack of skills, and limited access to resources lower productivity.
• Limited Access to Credit and Finance: Informal enterprises struggle to access credit, hindering growth.
• Gender Disparities: Women face additional challenges such as unequal pay and balancing household responsibilities.
• Health and Safety Hazards: Workers are exposed to unsafe working conditions and hazardous substances.
• Skill Gaps and Fragmentation: Limited access to training, coupled with weak collective bargaining power, hampers worker advancement.
• Access to Markets and Technology: Informal businesses struggle to compete with larger, organised players and access formal markets.

Related Government Initiatives

• MGNREGA: Provides wage employment to rural workers, contributing to income security in unorganised sectors.
• PMSYM (Pradhan Mantri Shram Yogi Maan-Dhan): Offers social security in the form of pensions for unorganised workers.
• e-Shram Portal: A national database for unorganised workers, helping them access welfare schemes.
• Expansion of ESI Scheme: Extends health and social security benefits to more unorganised workers.
• Webinars and Cross-Country Perspectives: Initiated to shape policies for gig and platform workers in the informal sector.

Way Forward

• Formalisation with Flexibility: For India to achieve its $5-trillion economy target, catalysing the unorganised sector is crucial. Policymakers should aim to bring unorganised enterprises under the regulatory umbrella, but with simplified processes and low compliance costs to avoid overburdening small businesses.
• Skill Development: Focus on creating training programs tailored to the unorganised sector to enhance worker skills and increase productivity.
• Financial Inclusion: Improving access to formal credit through digitization, microfinance, and government schemes will empower businesses in the unorganised sector to expand and invest in technology.
• Social Security: Expanding coverage of pension schemes, health insurance, and maternity benefits will provide a safety net for workers.
• Enhancing Collective Bargaining: Encouraging the formation of informal worker unions or associations could empower workers to negotiate for better working conditions and wages.

General Studies Paper-2

Context: The United Nations’ General Assembly adopted the ‘Pact of the Future’, promising to “reform the  United Nations Security Council (UNSC).

About

• In the ‘Pact of the Future’, world leaders agreed to redress the historical injustice against Africa as a priority and improve the representation of the under-represented and unrepresented regions and groups including Asia-Pacific, Latin America and the Caribbean.
• They also agreed to enlarge the Security Council to be more representative of the current United Nations membership and reflective of the realities of the contemporary world.

Key issues for Reform at UNSC

• Categories of membership,
• The question of the veto held by the five permanent members,
• Regional representation,
• The size of an enlarged Council and its working methods, and
• The Security Council-General Assembly relationship.

Need for UN Reforms

• Non-representative Council membership: When the UN was founded in 1945, the Council consisted of 11 members out of 51 members of UN; around 22%.
• Today, there are 193 member-states of the UN, and only 15 members of the Council — fewer than 8%.
• More financial contribution of non permanent members: There are countries whose financial contributions to the UN outweigh those of four of the five permanent members.
• For example, Japan and Germany have for decades been the second and third largest contributors to the UN budget.
• Unable to discharge basic functions: The Security Council cannot discharge its basic function as one of the permanent members of the Security Council attacked its neighbour.
• Russia, a permanent member of the UN, has vetoed UNSC resolutions on Ukraine issues.
• Im-balance of Power: The composition of the Council also gives undue weightage to the balance of power of those days.
• Europe, accounting for 5% of the world’s population, controls 33% of the seats in any given year (and that does not count Russia, another European power).
• India’s contribution & representation: Opportunities are also denied to other states such as India, which by its sheer size of population, share of the world economy, or contributions to the UN have helped shape the evolution of world affairs in the seven decades since the organisation was born.

Challenges

• Lack of Political Will: Although there is a general agreement towards change in the system, different countries have different perceptions of the requirement for change.
• Coffee Club: Uniting for Consensus (UfC) or Coffee Club, is a movement that developed in the 1990s in opposition to the possible expansion of permanent seats in the United Nations Security Council.
• Under the leadership of Italy, it aims to counter the bids for permanent seats proposed by G4 nations (Brazil, Germany, India, and Japan).
• Chinese Opposition: China being a permanent member blocks the growth of India becoming a Permanent Member.

Concluding remarks

• India has long sought a permanent seat in the Security Council to better represent the interests of the developing world. The nation’s quest has gained momentum with support from the international community.
• The U.N. Secretary-General, in his remarks warned that the 15-nation United Nations Security Council, which he described as “outdated” and whose authority is eroding, will eventually lose all credibility unless its composition and working methods are reformed.

General Studies Paper-2

Context: Leaders of the Quad group of countries met at their sixth summit-level meeting at Archmere Academy, Delaware, to announce a broad range of outcomes.

Quadrilateral Security Dialogue (QUAD)

• It is an informal multilateral grouping of India, the U.S., Australia, and Japan aimed at cooperation for a free and open Indo-Pacific region.
• Origin: The Quad began as a loose partnership after the 2004 Indian Ocean tsunami when the four countries joined together to provide humanitarian and disaster assistance to the affected region.
• It was formalized by former Japanese Prime Minister Shinzo Abe in 2007, but then fell dormant.
• After a decade it was resurrected in 2017, reflecting changing attitudes in the region toward China’s growing influence

Key Initiatives of QUAD 2024

• Quad Cancer Moonshot, a groundbreaking partnership to save lives in the Indo-Pacific region.
• Under this, India will provide $7.5 million worth of HPV sampling kits, detection kits and cervical cancer vaccines to countries in the Indo-Pacific.
• A commitment from the Serum Institute of India, in partnership with Gavi and the Quad, to support orders of up to 40 million HPV vaccine doses for the Indo-Pacific region.
• Coast Guard Cooperation: The First-ever “Quad-at-Sea Ship Observer Mission” in 2025 to improve interoperability and advance maritime safety between our Coast Guards across the Indo-Pacific.
• The Quad Indo-Pacific Logistics Network pilot project, in order to support civilian response to natural disasters more rapidly and efficiently across the Indo-Pacific region.
• The “Quad Ports of the Future Partnership” will harness the Quad’s collective expertise to support sustainable and resilient port infrastructure development across the Indo-Pacific.
• The “Semiconductor Supply Chains Contingency Network Memorandum of Cooperation” to enhance Quad resilience in semiconductor supply chains.
• Reform at the UN Security Council: The Leaders recognised the urgent need to make it more representative, inclusive, and democratic through expansion in permanent and non-permanent categories of membership
• Quad Principles for Development and Deployment of Digital Public Infrastructure were welcomed for the region and beyond.
• The Maritime Initiative for Training in the Indo-Pacific” (MAITRI) to enable regional partners to monitor and secure their waters, enforce their laws, and deter unlawful behavior.
• India will host the first MAITRI workshop in 2025.

The Strategic Significance of Quad

• Act East policy: India’s participation in the Quad emphasizing deeper engagement with East Asian nations and strengthening maritime security cooperation.
• Military cooperation: It provides a platform for military cooperation, intelligence sharing, and joint exercises aimed at maintaining maritime security and ensuring the rule of law.
• Counterbalancing China’s Influence: QUAD is crucial for India’s interests in safeguarding its maritime trade routes and ensuring freedom of navigation in international waters.
• India has supported a rule-based multipolar world and QUAD can help it in achieving its ambition of becoming a regional superpower.